Risk Breakdown Structure for a Project
Risk Breakdown Structure (RBS) is a hierarchical list of risks, which standardises the department's personnel resources that help in planning and controlling the project work. It also helps to identify and manage the project risks.
In a project, which has more number of risks, you can define different risk breakdown structures for each separate task. Each risk is differentiated by its time of occurrence, chance of occurrence and outcome. This kind of project also has a number of risk templates, which are the standard set of risk breakdown structures that allow you to easily add risks to the projects. These kinds of templates are always included in the projects with more number of risks. You can also create your own template and use it in your project. The total resources make the Level 1 in the hierarchies, and each subsequent level makes sub-level of the resource category. Each lower level represents a detailed description of the resource, which helps plan, monitor and control the work.
Each project has its Risk Breakdown Structure (RBS). The RBS benefits the people engaged in risk identification process by reminding them of the possible risk areas to think about. It provides an input to Qualitative Risk.
The Figure is the Risk Breakdown Structure for a generic project which explains each level with examples.
Figure : Risk Breakdown Structure for Generic Project
Analysis of each risk can be done whereby impacts are assigned as numeric or as High, Medium and Low. Risks are then prioritised according to the affects it causes in the Project's success.